2016 Market Correction not sequel to 2008 crash

The central driving theme has always been to put the fear of God into the masses the moments the markets start to correct. As the correction picks up steam, the talking heads start to scream louder and louder. If the masses would just pause for a second, they would realise that this is nothing but Groundhogs dog. These same idiots made the same proclamation if they were alive during the last stock market sell-off and as always it was the masses that were left holding the empty can, while the smart money made out like bandits.

Stock market outlook 2016; a Pictorial depiction

Instead of wasting a thousand words to explain the situation, we will let an image to the talking. The chart below clearly illustrates our point that every sharp pullback/correction is nothing but a buying opportunity.

The current situation is simply a repeat of past patterns. There is nothing new here. The mass hysteria and reaction from the media are the same. This is nothing but Déjà vu. The theme never changes. It’s like a broken record repeating the same nonsense over and over again.

It goes likes; something bad is going to happen a stock market crash is imminent, take cover and run for the hills. Sure, in the short-term the markets have experienced some violent moves, but fast forward, in every case, the markets recouped and traded higher. People will mention Japan as an example of a market that is still trying to play catch up decades later. Well, what happened in Japan happened in a different era?

Tactical Investor Stock market outlook 2016

We are now in the era of massive currency wars; in other words, every nation is hell-bent on debasing its currency, or it is being forced to because major players have jumped on the bandwagon. In such an environment, normal rules, do not apply, and central bankers usually respond by flooding the markets with money. Regardless of this issue, look at this long-term chart of the Dow, and it clearly illustrates that every so-called disaster was nothing but a buying opportunity.

For amusement purposes, we will list all the nonsense many of the naysayers are using to validate their arguments that stocks are headed lower

Ultra low oil prices Could lead to Stock Market Correction

We are told that low oil prices are bad for the economy. Hold on, was it not too long ago they were telling us that high oil prices were bad for the economy, so which one is it. Many oil companies will go bankrupt, but the ones that are left will emerge strong and be ready for the next bullish phase.

It is because oil prices are low that car sales jumped and set a record last year; 17.5 million vehicles were sold, and many consumers started purchasing Gas guzzlers they were avoiding before due to high gas prices. Ultra low oil prices are the equivalent of central bankers injecting roughly $1 trillion dollars into the global financial system, as that is how much the global economy will save at these rates.

Stock market outlook 2016: The China factor could be the switch that triggers to a Stock Market sell off

The claim here is that China’s economy is slowing down, and as a result have a negative impact on our economy. U.S. Corporations export roughly $500 billion year worth of Goods to China. We have an $18 trillion economy; hence, this is a non-event in our books, unless you have plenty of time your hands to waste on useless endeavours. Focus on the trend, not the noise, for the trend is your friend and everything else is you your foe.

Uncertainty after the Fed’s raised rates could lead a significant Stock Market Correction

For heaven’s sake, the Fed only raised rates by a paltry 0.25%, so what is all the fuss about? In our opinion, even another 2-3 rates will do nothing to derail this economy as rates are being raised from ultra-low levels. We think that the Fed will be forced to come out with another stimulus sooner than later as this economic recovery is nothing but an illusion.

The Fed’s only function is to artificially create boom and bust cycles. Other than that they have no other function in the market. They are a parasitic organisation, and if we had decent politicians, they would have abolished the Fed long ago. However, to find out more on the real function of the Fed, consider reading this article. Federal Reserve Bank-Most Dangerous Criminal Enterprise In the World.

In the interim, until Fiat is abolished every strong market correction has to be viewed as a buying opportunity as banks and the elite money players take a perverse delight in fleecing the masses from the little they have. To control the masses, they have to make sure that they have just enough to survive but not enough to think. Hence the term “rat race’: people are hustling and bustling, but at the end of the day they are going nowhere. Like Hamsters, they run faster and faster, but only the wheel spins faster; exhausted, they get off the wheel too tired to realise that have not even advanced one centimetre.

Stock market outlook 2016: What to do if the Markets sell off

March to your drumbeat; do not listen to the Doctor’s of Doom. As we stated in several of our past updates, we expect 2016 to be the most volatile year on record to date. Now is the time to build up a nice list of stocks that you always wanted to own but felt were too expensive to buy. History indicates that the stronger the markets deviate from the norm, the better the buying opportunity.Here is a small list of stocks that have held up remarkably well during the current sell-off; PBY, IGLD, PRMW, MCD, MO, CALM, etc.

A Trump will drive the masses to stampede as the media outlets will serve them extra doses of fear and like fools, they will jump off the cliff without a worry in the world. If this should transpire don’t fall for the Garbage as we have repeatedly stated the trend is up and until the trend changes, every strong pullback has to be viewed through a bullish lens. The advice we offered our paying subscribers back in May of 2015 still stands:

When you think logically and or use old parameters to gauge this market, every single bone in your body probably screams out that this market should crash and burn. That is true, but what is also true is that as nothing is real, logic has no place when it comes to the illusory.

How can you use logic (which is based on using real and compelling data) to judge an event that is illusory in nature? Every statistic imaginable has been, is being or will be manipulated to satisfy whatever picture the manipulators want the masses to believe in.

It takes two to tango, one to cry and three to have a party, thus the crowd is as complicit in this game as are the manipulators. The most likely outcome is that the markets will trade higher than anyone expects as long as the trend remains up. Market Update May 31, 2015

Do not fixate on Stock market outlook 2016 or Stock Market outlook 2017, for that is the wrong way to play the investment game. Focus on the trend and on the masses. If the masses are panicking then it is time to buy and vice versa. The trend is your friend, and everything else is your foe.